So, How’s the Market, October, 2018

Third Quarter 2018 Real Estate Review

All data taken from ReColorado, on October 15, 2018. Denver, Colorado.

The first three quarters of 2018 for real estate in Denver, CO experienced all of the same aggressiveness as the last 3 quarters of 2017. Bidding wars for houses, prices rising and inventory at historical lows for The Denver metro area. However, the tide is changing.

There are currently 8,602 Active Single Family and Condominiums as of today. At the end of the 1st three quarters of 2018 compared to the end of the 1st three quarters 2017 the total number of listings taken is 14.1% higher today.

At the end of 1st three quarters of 2017 the Average Price was $423,699 vs. the end of 1st three quarters 2018 the Average Price is $451,402 a 7.1% increase in one year. Median price went from $374,000 to $398,950 or an 6.7% increase indicating there just are not many lower priced homes on the market today.

The Days on the Market in 1st three quarters of 2017 was 23. Today it’s 23 days on the market giving the impression the market is performing like it did. However, the number of homes that went under contract in 2018 is -11% less this year. Which indicates the trend of the numbers in the buyer pool are shrinking at a rate equal to the rise in inventory. As inventory goes up and the number of buyers buying is at lower levels, prices will flatten quickly. This is the first sign of a market slowing down to a more normalized selling pace.

The Luxury Market, above $1M in price is improved year over year and is experiencing a 6-month supply of homes. This is the best position sellers of homes above $1 Million has been at for 10 years. However, when you take the Luxury Market price up to $1.5 Million it tells a different story for Denver. For single family homes priced above $1.5 Million Dollars, the month supply of homes is 9.5-months. As you get above $1.5 Million in the luxury market the month supply increases and certain zip codes may not perform at the average rate due to more inventory and less buyers.

For single family homes priced below $1 Million Dollars, the month supply of homes is 2.17-months’ supply. A very attractive number for sellers, but this number represents a 25% increase in supply vs. 12 months ago when the supply was 1.61 month. As the prices get lower, the month supply goes down. No question, the prices of homes below $350,000 will continue to rise but at a lower rate with less bidding wars moving through the end of 2018 into 2019.

The Attached Home Market currently has a 1.93-Month Supply of Homes. Expect this to increase as the inventory up to $250,000 for attached homes is rising at faster rates in 2018 than previous years. Good time to move your condo now if you are considering selling.

What Does the Future Hold for Denver Real Estate?

Appreciation to continue but predicting 2019 we would anticipate home price to slow to 2-4% levels of appreciation.

Interest Rates have risen to 4.7/8% today for a 30 year fixed rate and will continue to rise into 2019 causing housing inventory to increase and sales to slow down.

The opportunity to move up to your dream home could not be at a better time than NOW!

What Should Buyers Do in Today’s Market?

Be Ready To Buy! Be pre-approved to make a competitive offer.

Know you will have more room to negotiate moving forward and you should understand the condition of your new purchase very well.

Waiting is never an option in a rising interest rate market, as your buying power goes down faster than the average price of a home. Buy now to take advantage of below 5% interest rates.

What Should Sellers Do in Today’s Market?

Be positioned as the best conditioned home. You will get top dollar this way.

Scrutinize your Price Position NOW! If you entered the market in the last 30 days and have not had the activity or contracts you would have expected, its time to evaluate your Price Position to sell before the typical market slowdown of the winter months. Getting it price right and sold now will save you dollars in the future. Rather than waiting in the market as the slow down factors will continue into 2019.

It’s October, make your home winterized from the street to the landscaping to attract the most traffic possible in the first few days and get some of that overgrown look removed as things start to hibernate!!!